Suppose that in 2015, the chain-weighted price index for GDP in Estonia is 220, and the chain-weighted price index in Lithuania is 160. In 2016, the price index in Estonia is 242, and the price index in Lithuania is 180. You could conclude that:
A. Estonia is a more expensive place to live than Lithuania.
B. Lithuania is a more expensive place to live than Estonia.
C. Estonia's rate of inflation is higher than Lithuania's.
D. Lithuania's rate of inflation is higher than Estonia's.
Answer: D
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Prices of smartphones (assume that this is a normal good) have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen
Which of the following best explains the falling prices of smartphones? A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left. B) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right. C) The demand curve and the supply curve for smartphones have both shifted to the left. D) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right.
The current account includes records of a country's
A) net transfers. B) net investment income. C) net exports. D) All of the above are included in an economy's current account.
You know that a candy bar cost five cents in 1962 . You also know the CPI for 1962 and the CPI for today. Which of the following would you use to compute the price of the candy bar in today's prices?
a. five cents (1962 CPI / today's CPI) b. five cents ((today's CPI - 1962 CPI)/1962 CPI) c. five cents (today's CPI / 1962 CPI) d. five cents today's CPI - five cents 1962 CPI.
The employment rate equals the number of
A) employed persons divided by the number of unemployed persons. B) unemployed persons divided by the civilian non-institutional population. C) employed persons divided by the civilian labor force. D) employed persons divided by the civilian non-institutional population. E) none of the above